When it comes to domestic leasehold premises in Seven Kings, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years remaining. Residents in Seven Kings with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has under 80 years outstanding, under the current Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Seven Kings with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Seven Kings leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her studio flat in Seven Kings, Amelia commenced the lease extension process just as her lease was nearing the critical 80-year threshold. The legal work was finalised in March 2011. The freeholder’s charges were restricted to slightly above 500 GBP.
Last year we were contacted by Mr and Mrs. B Allen , who completed a one bedroom apartment in Seven Kings in September 2007. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical residencies in Seven Kings with an extended lease were valued about £193,400. The mid-range ground rent payable was £65 collected monthly. The lease elapsed in 2084. Having 59 years remaining we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Seven Kings residence is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case related to 1 flat. The number of years remaining on the existing lease(s) was 61.36 years.